Varmora Granito Q2 FY27 Profit Jumps 175.5%

September-quarter earnings show a recovery

Varmora Granito Ltd reported a sharp increase in net profit for the second quarter of FY2026-27. The company’s net profit was reported at ₹45.32 crore, up 175.5% from the corresponding quarter of the previous year. On a sequential basis, net profit rose 258.54% from the preceding three-month period. Revenue for the September 2026 quarter stood at ₹399 crore. The result was the company’s first quarterly earnings release after its September 29, 2026 listing on the BSE and NSE. The company’s performance was supported by a recovery in the September quarter and growth in its premium tile and technical product portfolio.

Revenue rose to ₹399 crore in Q2

Quarterly revenue increased to ₹399 crore in September 2026 from ₹367 crore in September 2025. This represents year-on-year growth of about 8.7%, based on the reported quarterly figures. Revenue was also higher than ₹315 crore reported in June 2026. However, it remained below the ₹453 crore recorded in the March 2026 quarter. The movement indicates a recovery from the June-quarter level. Management has said that the domestic business remained strong despite the effect of a business divestment on reported growth.

Half-year profit reached ₹53.7 crore

For the six months ended September 30, 2026, Varmora Granito reported profit after tax of ₹53.7 crore, a year-on-year increase of 498%. Revenue from operations for the first half rose 3.3% to ₹714.2 crore. The company attributed the slower reported revenue growth partly to the divestment of Simola Tiles LLP. Management said standalone Varmora’s domestic business grew 20%. Exports were affected during the first half by container availability constraints. The company expects export activity to improve as container availability normalises.

EBITDA and margins improved in the quarter

Reported information on the September quarter showed EBITDA of ₹68.3 crore, up 19% from ₹57.2 crore a year earlier. EBITDA margin improved to 17% from 14.7% in the comparable quarter. Management has guided for EBITDA margin of around 18% in FY27 and 19% in FY28. It also expects profit after tax margin of around 10% in the following year. The company said input costs had risen by 14-15%, while prices were increased by around 16-17%. Product mix changes in glazed vitrified tiles and ISTD products were also cited as margin-supporting factors.

Key reported financial and operational data

Existing capacity remains central to FY29 plan

Varmora Granito has reaffirmed its FY29 revenue target of ₹2,500 crore. Management said existing manufacturing capacity, including the Tezpur plant, can support revenue of roughly ₹2,300 crore to ₹2,500 crore. This reduces the need for major near-term capital expenditure, according to the company. The Tezpur facility in Assam has capacity of 6.4 million square metres and revenue capacity of ₹240 crore. It operated at 50% utilisation in the previous quarter, while management said utilisation had reached 75% in the current month. The company expects Tezpur utilisation to be around 75-80% in the second half.

Export recovery and domestic demand are key factors

Management said export performance was weak in the first half because of container shortages. It expects exports to improve in the second half as containers become available. In Morbi, the company reported utilisation of 80%. Domestic growth and better capacity utilisation are expected to support the company’s operational plans. The company is also focusing on higher-margin products in its GVT portfolio. It said ISTD products have received market traction and offer improved margins. These operational factors will be relevant to the company’s stated margin targets.

Working capital and new business plans

Varmora Granito plans to reduce working capital days to around 85 by the end of the current financial year. It has set a further target of 74-76 days for the following year. Separately, the company expects its lab-grown marble business to generate around ₹140 crore of revenue by FY28. Management has indicated gross margins of 50-52% and EBITDA margins of 24-26% for this business. A new manufacturing facility at Sanand is planned for the second half of FY29. Until then, the company expects its current production base to meet growth requirements.

Investor communication followed the results

The company announced an analyst and investor conference call under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The discussion covered Q1 FY27, Q2 FY27 and H1 FY27 operational and financial performance. Varmora Granito later made the audio recording of its October 23, 2026 financial-results discussion available on its website. This gives shareholders access to management commentary on revenue, margins, capacity and exports. The September-quarter result is significant because it provides the first listed-market reference point for the company’s financial performance. Future disclosures will show the progress of exports, margin expansion, capacity utilisation and working-capital reduction against management’s stated plans.